‘Cramdown’ legislation could be a losing battle, backers say
Tuesday, December 15th, 2009By Silla Brush - 12/14/09 07:35 PM ET
Controversial legislation that would give judges new power to rewrite home mortgages is on life support.
Leading House and Senate Democrats have fought for more than a year in favor of a policy they argue is critical to stemming foreclosures, keeping people in their homes and boosting the housing market. On Friday, the House dealt it a stunning blow when the measure — attached to a broad financial overhaul bill — failed, 188-241.
The vote was the latest indication that the legislation, which the financial industry calls “cramdown,” does not have the support to make it through Congress anytime soon. The House passed similar legislation in March by a nearly opposite margin, but the Senate effort failed by 15 votes.
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